Swot Analysis and Retail Industry

Topics: Supermarket, PEST analysis, SWOT analysis Pages: 11 (3479 words) Published: May 17, 2013
Table of Contents
PEST analysis of the world2
Political analysis2
Economic analysis2
Social analysis3
Technological analysis3
Issue that caused Woolworth decline and new opportunity6
SWOT Analysis7
Issue that caused Woolworth decline and new opportunity9
Recommendation of new strategies10

Woolworths was first opened in Sydney (Datamonitor, pr 1). The company deals with the sale of electronic goods, general merchandise, liquor (Safeway liquor) as well as grocery. One of the major challenges that face the company is competition. This is because the supermarket industry in Australia is very competitive. The company’s major competitors are the composite buyers, Cole’s, IGA and the franklins. Moreover, the company also faces competition from the Audi (Datamonitor, pr 1). The company also has the health and safety policies that ensure that they are committed to ensuring workplace safety. They include a risk management approach, effective employee consultation as well as effective implementation of the policy (Datamonitor, pr 1). PEST analysis of the world

`In their day-to-day running businesses are affected by macro-environmental factors, which are analyzed, using a pestle analysis. A pestle analysis is simply a framework that classifies environmental influences as political, economic, social, technological, legal and environmental (Kotler et al 68-108). Political analysis

Woolworth success can also be linked to the peaceful environment. It is evident that, peace has prevailed in Australia due to political stability. This has not only seen the growth of the retail industry, but also many businesses in the region have succeeded. It is evident that, a stable political environment results to an effective economic environment (Kotler et al., 68-108). Economic analysis

Economic factors are economic growth, interest rates, exchange rates and inflation rate. As currently Japanese, United State and Hong Kong currencies are going down, but Australia’s currency is keep growing up, exchange rate goes down from Australia to other country, under this situation, Australian should import some products from other countries in a lower price and sell in Australia, which can helps decrease the outlay and earn more money. Base on this information, Woolworth should also look for some new brand from other country and import them to get advantage under the economic growth which can should import some products from other countries in a lower price and sell in Australia, which can helps decrease the outlay and earn more money. Social analysis

Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Social cultural trends can show that the changes of consumer tastes and behavior. As In the last thirty years, Australia has liberalized its immigration policy and opened its borders to Europe, Middle-East and Asia. This has caused a real shift in self-perception as Aussies begin tore-define themselves as a multi-cultural and multi-faith society rather than the old homogenous, white, Protestant nation. Under this situation, Woolworth should import Europe, Middle-East and Asia’s foods and stuffs, because there are more and more people come to Australia, stuffs from their home country can reduce their home-sick, also increase customer’s loyalty and satisfaction. Technological analysis

Technological factors include ecological and environmental aspects and can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Some technologies such as CCTV cameras for monitoring customers during self-service must also be up to date to ensure efficiency. In addition to this, the use of social Medias such as Facebook, Twitter, Weibo, and...

References: 1. Australian Competition and Consumer Commission, Report to the Senate on Prices Paid to Suppliers by Retailers in the Australian Grocery Industry, Canberra. pp. 42-65, 2002
2. Chow-Hou Wee, Sun Zi Art of War and SWOT Analysis: Perspectives and Application to Business, Asia Pacific Management Review, 2002
3. Datamonitor, 2007, Company Profile, Woolworths Limited, accessed on Feb 13, 2013
4. Deakin University, Management, John Wiley & Sons Australia Ltd. pp.269-270, 2004
5. Kotler, Phillip and Kevin, Lane Keller,Mairead Brady, Malcolm Goodman, Torben Hansen Marketing Management. New Jersey, Prentice Hall. pp. 68-108, 2009
6. Round Davis, The power of two: squaring off with Australia’s large supermarket chains, Australia journal of Agricultural and Resource economics, 50(1), pp51-64, 2006
7. Smith Robinson. The Australian grocery industry: a competition perspective, Australia journal of Agricultural and Resource economics, 50(1) 33-50, 2006
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